I’m writing about Broadspire again and, unfortunately, we haven’t been hearing good things.

Apparently Broadspire has been sending payments to providers via credit card, and sending them to providers who had not previously agreed to credit card payments.

This is problematic for several reasons, but the most troubling aspect--and the one I’m writing about today--is the costliness to providers of this payment method.

It is one thing for providers to absorb credit card fees of 2-3% (or more) for small co-pays and deductibles, not only because the amounts involved are relatively small but also because it’s just much easier collecting in this way from many patients at the place and time of service.

But it is completely unreasonable to expect providers to absorb these fees for entire medical bills, which frequently run into the thousands of dollars. Mind you, Broadspire has to pay these medical bills anyway. Why should providers bear this additional burdensome cost when it is Broadspire that wants and benefits from this payment method?

It’s been pointed out that the credit card payments arrive in 15 days or so, in contrast to the 45 days for check payments. But who is willing to pay 2-3% to get their money 30 days sooner? For example, if Broadspire pays a $1,000 bill with a credit card, the provider would be out at least $25 at a pretty conservative 2.5% fee. Over the course of a month or year, the fees could add up to thousands of dollars.

Add these costs to the PPO discounts that providers are already burdened with and it’s no wonder that providers are increasingly refusing to treat injured workers.

We’d like to hear from other providers, or from Broadspire itself, whether Broadspire is, indeed, sending unsolicited credit card payments and whether or not providers are being forced to absorb the entire cost of the credit card transaction fees.

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